There is a long list of specialist contractors that each provide a lot of value for our society. For example, the industry of contractors just for artificial grass turf installation is worth more than $3 billion every single year in the United States alone. When you add in the other kinds of contractors out there, the whole world seems to be made by contractors.
However, despite the variety of contractors out there, they do have certain things in common. For one thing, it is extremely valuable for general contractors and specialist contractors alike to find the best options in insurance.
But why is contractor insurance so important for general contractors? Read on to learn about the most important reasons that general contractors benefit from insurance!
What Is Contractor Insurance?
There are 1000 different kinds of insurance because everybody has different insurance needs. Unfortunately for general contractors, there are many reasons that they might need insurance coverage. That creates a long list of insurance that they may need to buy.
In theory, a modern contractor business might need some kind of insurance for property, automobile insurance, worker’s compensation insurance, data breach insurance, business umbrella insurance, and more! In practice, things are a lot simpler than that.
Because of the special needs of contractors, contractor insurance was created. Contractor insurance provides for the general insurance needs of contractors. That means that you only need to buy one kind of insurance rather than buying an endless amount of different insurance types.
Contractor Insurance Will Protect You Against Huge Costs
When you are considering going with an insurance provider, you can ask them what they cover. You should discuss the various services that your business performs. Generally speaking, the insurance provider can tell you if their general contractor insurance will cover all of your needs.
The result of this whole process is that you can be protected from all major concerns.
Contractors end up working with a lot of heavy machinery. They also perform hard labor. This kind of work can sometimes be dangerous.
On top of that, the tools that contractors use are expensive. They are also vulnerable to cyber crime. Cyber attacks are on the rise, and most people are not prepared for them.
But as we have seen from the many benefits of contractor insurance, you can be protected from all of these problems at the same time.
You Can Win Larger Contracts With Contractor Insurance
There is a reason that the biggest contractor companies use insurance. It is part of responsible business management and prudent thinking. It is a sign that a company is handling things correctly and not cutting corners.
Over the years, everybody has learned to use certain signs to guess if a contractor will do a good job or not. One of the things that potential clients often look for now is whether a contractor has general liability insurance. After all, if they do, that is a sign that they are working responsibly.
On top of that, if the contractor is fully insured, then the client does not have to worry that any liability problems will come back to them.
The result is that many large contracts are not available to contractors who do not have contractor insurance. You can be moderately successful as a small contractor without insurance, but your lack of insurance will put a ceiling on your room for growth.
If you want to grow your company, you will need to get quality insurance!
Modern Contractor Insurance Can Protect You Against Cyber Crime
Many people are unfamiliar with cyber crime. In the past, that has been a good thing. It was a sign that cyber crime was uncommon.
Unfortunately, people are about to start becoming familiar with cyber crime. Cyber crime is becoming more and more common. One of the most common kinds of cyber crime is ransomware.
Modern businesses are dependent on the data and information that they store on their devices. Ransomware takes that data and information away and demands payment before you can get it back.
Many companies are unable to operate without their essential data. They are forced to give in to the ransom demand.
Fortunately, great insurance can protect you against data breaches as well. It is one of the simplest ways to manage your cyber security needs. The alternative is to learn all of the various ways you might be vulnerable to cyber crime and take steps to prevent them.
Contractor Insurance Will Protect You From Litigation
Any good contractor insurance guide will emphasize the danger of litigation. Clients and other people who may get hurt where you are working may attempt to sue you. One of the most important contractor insurance tips is to make sure that you get insurance that protects you from these kinds of attempts at litigation.
Understand All the Benefits of Contractor Insurance
We hope that some of the ideas in this article about why it might be a good idea for you to get contractor insurance have been helpful for you. Learning about insurance may not be the most attractive part of running a business, but it is an extremely important one. The time that you spend working out your insurance needs will more than pay off down the line.
To learn more about the importance of liability insurance for contractors or to find a quality supplier, feel free to reach out and get in touch with us here at any time!